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excise records show a sale of 10,000 cases of 9 liters
each in April-July in 2007 compared to 6,100 during
the same period in 2006. This growth has been achieved
although the state's declared policy of allowing wine
bars to operate at nominal annual licensing fees, has
not yet come into play.
Pune District alone has 11 wineries. About 90% of the
Indian wineries are located in Maharashtra. Several
political bigwigs own land giving a further impetus
to the wine industry growth.
There is a good reason for this mammoth growth. Says
Vijay Chinchalkar, Superintendent of state excise department,'
A total excise waiver, i.e . zero per cent tax, is in
effect for units producing wine in Maharashtra.' The
waiver for 10 years was announced in the special excise
policy declared in 2001. The policy had also reduced
sales tax to 4% on the state-produced wines . When the
federal government shifted to 20% VAT, this benefit
was withdrawn. The producers are paying these taxes
under protest and hope to get the current policy reversed.
This excise benefit is not available to the out-of-state
producers (Grover being the major victim of this unfair
policy), or the foreign wines. Excise duty of 150% on
the manufacturing costs or the assessable value in case
of imported wine is levied additionally to help the
local growers stay more profitable.
Bangalore based 16 year old, Grover Vineyards has been
obliged to buy and bottle grapes in Maharashtra for
its newly launched Sante range of wines-only to save
taxes. The company is scouting around for land near
Nashik to 'save taxes and make our wine competitive
in the Maharashtra market. We cannot ignore this market
although our earlier details studies spread over a few
years had shown that Maharashtra is not the best region
for growth of wine grapes of quality, 'says Kapil Grover,
Managing Director of the company.
Pune has been the automotive capital of the state.
Of late, global IT players and the top Indian IT companies
have made it an important base. The changing lifestyle
due to the advent of InfoTech companies and the personnel
engaged in it has resulted in wine gaining center stage
as the alcoholic beverage.
As of now, the Pune district has only one exclusive
wine bar 'Athena' at Narayangaon, owned by Chateau Indage.
But 'more are expected to come up soon. The department
has received letters of intent from prospective wine
bar promoters', adds Chinchalkar.
The government resolution will make it easier for prospective
wine bar promoters to secure an exclusive licence without
having to bother about the earlier mandatory requirement
of having an eatery or restaurant licence. A minimum
space of only 160 sq.ft (16 sq. mtres.) and sufficient
storage facility is all that will be now required for
setting up a wine bar.
It is heartening to note that the growth in beer and
the Indian made foreign liquor (IMFL), has been much
smaller, at only 24 and 15 per cent respectively.
Other second tier cities like Ludhiana, Jaipur, Pondicherry
and Chandigarh are also witnessing a similar boom.
Subhash Arora
August 12, 2007
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